Mr. Bhavesh Jain, MD & CEO,
TransUnion CIBIL
Building
and maintaining a healthy credit profile becomes especially important when
preparing for a major financial commitment such as buying a home. Many
consumers review their CIBIL Report more closely at this stage, often after a
long gap, and are surprised to find older loan accounts or closed credit cards
they had forgotten about. This naturally raises questions about whether such
accounts still influence their credit profile and what they should focus on
before applying for a home loan.
Someone
recently asked me: “My father wants to buy a flat. When he checked his CIBIL
Report, it showed multiple loan accounts he had completely forgotten about,
including an old consumer durable loan and a closed credit card. How should
consumers understand the account information section? Do older or closed
accounts continue to influence the overall credit profile, and what should they
focus on before applying for a home loan?”
A
CIBIL Report is designed to provide a complete view of an individual’s credit
history. It includes both active and closed accounts because lenders assess
long-term borrowing behaviour, repayment discipline and financial reliability.
The account information section outlines details such as account status,
outstanding balance and repayment history, including month-by-month records for
the last 36 months.
A
common misconception is that closed accounts negatively affect the credit profile.
While the CIBIL Score considers information reported in the last 36
months, the CIBIL Report reflects the broader credit journey, so older
accounts continue to appear. Well-managed closed accounts can, in fact, reflect
positively.
Before
applying for a home loan, consumers should verify that account details,
repayment history and account status are accurate. Reviewing the report
carefully helps identify discrepancies, strengthens financial preparedness and
enables borrowers to approach the home loan process with greater confidence.